New Study Proves Tourism Promotion Campaigns Increase Visitation

The Power of Destination Marketing

Reducing state and local tourism marketing programs in the name of saving taxpayer dollars impedes economic growth, according to new research conducted by Longwoods International and commissioned by the U.S. Travel Association. A comprehensive analysis of recent campaigns by the State of Michigan and the Greater Philadelphia Tourism Marketing Corporation (GPTMC) reveals that marketing programs drive greater visitation, generate new tax dollars and create jobs for states and local communities. The research proves that destination marketing programs generate more tax revenue than they cost by driving substantial increases in visitation and spending in local communities.

There’s a reason that America’s most prominent brands continue to increase their marketing budgets: it works. This study proves that destinations must operate like Nike, Apple and similar businesses that have followed the marketing path to success. Substantial cuts to destination marketing programs are counterproductive and will have long-term negative economic consequences.

The Pure Michigan® Case

After inconsistent promotion efforts for decades, the Pure Michigan® state promotion campaign began regionally in 2006 and went national in 2009.

The powerful and non-traditional storytelling of Pure Michigan® has stimulated 7.2 million trips to Michigan by out-of-state visitors. Those visitors spent $2 billion at Michigan businesses and generated $138 million in new tax revenue for Michigan – more than three times the cost of the advertising itself.

In 2010, the second year of national Pure Michigan® advertising, spending by out-of-state leisure visitors jumped 21%, from 2009 to $6.4 billion.At the same time, Michigan tourism-related employment rose by 10,000 jobs.

While facing a large deficit and forcing significant cuts to entitlement programs, Michigan Governor Rick Snyder nonetheless added $10 million in additional funding to the Pure Michigan® campaign in 2011, stating: "It brought in more tax revenue than it has cost our state."

The Philadelphia Story

In Philadelphia, a 1995 report by The Pew Charitable Trusts identified leisure travel as a potential replacement industry for lost manufacturing jobs.

This led to the creation of the Greater Philadelphia Tourism Marketing Corporation (GPTMC) in 1996 by Pew, the City of Philadelphia and the Commonwealth of Pennsylvania to promote the region to leisure travelers.

Through a sustained marketing program over the last 15 years, Philadelphia’s image has transformed and visitation has surged, delivering returns to the city and state.

Since 1997, overnight visitation to Greater Philadelphia has grown 66%, six times faster than the national growth rate of 11%.
GPTMC’s most recent campaign began in 2009 in the midst of the deepest and longest economic downturn since the Great Depression. With a budget of just $4.3 million in 2009/2010, With Love, Philadelphia XOXO®generated 3.7 million incremental trips to the Philadelphia region, injecting $432 million in visitor spending and $24 million in new state tax revenue and $22 million to local governments.

The marketing program also generated over 7,000 additional jobs for Greater Philadelphia at a reasonable cost of $600 in advertising for each job created.